Big raise

[onbrake]

Can the Trustee raise my brothers payment and how will he find out.he will get a big raise next month asked his lawyer what to do and his lawyer just winked and said he never heard him say anything about a raise and winked again.What will happen if they find out later.he has one of the best lawyers in the state.he does not have to give tax returns or give any refunds to trustee.

[nikobar]

It depends, some trustees care. New York Western Disctrict is more involved because my chapter 13 plan has "trustee will monitor income" section. Each year i have to submit Tax returns and pay stubs. In your case if there is no monitoring involved i don't think they are obligated to monitor anything.

[HHM]

AS was mentioned, it depends.

Very likely somewhere in his chapter 13 plan or the trustee information sheet that your "brother" has, it probably explains what needs to be done.

In general, if the trustee finds out, they would raise the payment. However, it is actually quite rare, most trustees don't like to tinker with plans after confirmation, they are too busy with their existing case loads to mess around with someone who is making their payments.

I suppose the worse case scenario, if the trustee has a standing instruction on reporting increase and income, and your "brother" did not follow-it, the trustee could dismiss the case.

[usmccop]

I've been in my 13 for 3 full years now (5 year plan). I have never been contacted by my trustee- plus I get about 3k a year in tax refunds.

[onbrake]

Can they go back and get extra money for not reporting it.He also changed his 401 k deduction from 8% down to 3%.Will they catch that his match changed from up to 8% to 3%.That gives him an extra 5% to play with.

[usmccop]

Can they go back and get extra money for not reporting it.He also changed his 401 k deduction from 8% down to 3%.Will they catch that his match changed from up to 8% to 3%.That gives him an extra 5% to play with.

I did that.... Each state is different as well as the trustee. I don't think they "go back" but they can dismiss your plan.

I was told only to report a 10% in crease in my salary.

If they take your tax refunds, I'd just jack up my withholding and get more each check instead of giving them my tax refund.

[JDW]

IMO I think it has more to do with your payback %. I am in a 100% payback and recieved all tax refunds, including a huge amended return last year. Also have recieved nice raises. Maybe I just got lucky, but am gaining while in year 3+ Chapter 13.

[JDW]

IMO I think it has more to do with your payback %. I am in a 100% payback and recieved all tax refunds, including a huge amended return last year. Also have recieved nice raises. Maybe I just got lucky, but am gaining while in year 3+ Chapter 13.

P.S. My laywer said I am OK

[elflaco]

IMO I think it has more to do with your payback %. I am in a 100% payback and recieved all tax refunds, including a huge amended return last year. Also have recieved nice raises. Maybe I just got lucky, but am gaining while in year 3+ Chapter 13.

P.S. My laywer said I am OK

Oh yeah, you're lucky.

Our trustee is a soulless ogre...

[Billssuck]

My trustee doesn't require that we send in tax returns; however, we are supposed to notify him when our income increases 10 percent. This is hard to determine as our income isn't stable from month to month (husband works in sales now and gets a commission) and I'm part-time but on-call 6 days a weeks. Some months are good, others are not.

When I asked my attorney (more than once) how to determine when we exceed the 10 percent, he just repeats, "when you exceed 10 percent let me know" and he says nothing further. I really believe this is the standard answer he knows he legally is required to tell me but the reality is that if we just lay low and make our payments on time that we will be fine. Still, I am uncomfortable with not letting him know if something big happens (i.e. I get full-time employment) or if I know I will exceed the 10 percent at the end of the year in fears of a possible dismissal of my ch13.

[usmccop]

I do the same thing.I'm not worried about it. If you lay low and pay on time they should leave you alone; they're just too busy. Can you imagine all of the failures in a 13? The trustees are probably way too busy.

Also, not sure about you, but I signed no agreements or advised of any laws requiring me to do the aforementioned.

[Billssuck]

Yes the trustees are too busy to care much about someone like me making my plan payments on time. My attorney said the trustee has about 25,000 cases he oversees so it is difficult to monitor any one case too closely...

I do not remember signing any agreements about this topic but I do remember when we were debriefed at our 341, they also told us about the 10 percent income increase rule. Plus it is also stated in my confirmation paperwork I received. If something significant does happen to increase my income EVERY month, I plan on reporting it. Otherwise, I will keep on keeping on...!